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Card Machine Fees Explained (UK)

Last updated: 7 min read

The headline rate a provider advertises is rarely the whole story. Here's every fee that can land on a UK card machine bill, what's normal, and where the catches hide.

1. The transaction fee

This is the percentage (and sometimes a few pence) taken from every card sale. UK pay-as-you-go providers typically sit around 1.69%–1.75% for in-person payments, while quote-based acquirers can offer lower blended or interchange-plus rates at higher volumes.

Watch for different rates by card type — premium, commercial and international cards often cost more than a standard UK debit card.

2. The monthly fee

Pay-as-you-go providers (SumUp, Square, Zettle) charge £0 a month — you only pay per transaction. Quote-based providers (Dojo, Worldpay, Barclaycard, Tyl) often charge a monthly fee plus terminal hire.

A monthly fee isn't automatically bad: at higher volumes a lower transaction rate can more than pay for it. Our fee calculator works out where the crossover is.

3. Hardware cost

You either buy the reader outright (£19–£599 depending on the device) or hire/finance it monthly. Buying is usually cheaper long-term; hiring spreads the cost but can lock you into a term.

4. Payout / settlement charges

Standard payouts (1–2 working days) are usually free. Instant or same-day payouts often cost extra — a flat fee or a small percentage. If cash flow is tight, factor this in.

5. The fees providers prefer to bury

These are the ones that don't make the homepage:

  • Chargeback fees when a customer disputes a payment
  • PCI compliance fees or non-compliance charges (more common with traditional acquirers)
  • Authorisation fees per transaction on some merchant accounts
  • Early cancellation / exit fees on fixed contracts
  • Minimum monthly service charges if you don't hit a turnover threshold

So what actually matters?

For low volumes, the transaction rate and zero monthly fee dominate — pay-as-you-go wins. For higher volumes, a slightly lower rate with a monthly fee can be cheaper overall, but only if there's no contract trap. Always check the total cost of ownership, not just the headline percentage.

FAQs

What's a typical card machine transaction fee in the UK?

Pay-as-you-go providers are usually around 1.69%–1.75% per in-person transaction. Quote-based acquirers may offer lower blended rates at higher volumes, but add monthly and hardware costs.

Are there card machines with no monthly fee?

Yes — SumUp, Square, Zettle and entry myPOS plans have no monthly fee. You buy the reader and pay a percentage per sale.

TP

The POS editorial team

Independent UK payments research. We test, read the small print and write it up in plain English.

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